Buying a House 101: How to Make an Offer

The hard work is done once you find a house you want to buy. Right? Unfortunately, a whole new process is opening up before you. Don’t worry, though. Buying a house and making an offer is something every homeowner has completed successfully.

You need to understand what’s happening, what the steps are, and what research you need to do to be prepared even if you’re working with a real estate agent.

3 Keys to Buying a House and Making an Offer

Making an offer isn’t as simple as throwing your ideal price at the seller. Instead, you need to think and act strategically. This is especially true if the seller is fielding other offers – you need to make sure yours is the one they choose. Here’s how.

1. Research a Solid Price to Offer

Your real estate agent will have the background and experience to help you come up with a good offer. However, you can do some research on your own to make sure you’re not missing anything. This is a good practice for one of the most important purchases of your life!

Search online for homes comparable to the one you want in the area, including ones on the market and ones that have sold. Note the prices. You can also check out your prospective home’s selling history and see how the value has gone up (or down) over time. Compare your findings to what your realtor has recommended. If the numbers are different, ask your realtor why, and possibly change your offer.

2. Get Pre-Approved for a Mortgage

Ideally, you’ll already be pre-approved for a home loan once you’re committed to getting into a new house. If you haven’t, do it before you submit your offer to look more serious about the purchase to the seller.

3. Rely on Your Real Estate Agent

Most people don’t go into making offers on houses alone. It’s a complicated process with lots of paperwork, unfamiliar terms, and necessary tasks – it would be easy for you to miss something. Your realtor will make sure to guide you through making an offer and will help take care of the documents you need to give to the seller.

Often termed a “purchase agreement,” your offer will include pieces of information like the price you’re offering, the loan details, the down payment or deposit amount, escrow information, the closing and possession dates, and contingencies that will allow you to end the contract with no repercussions.

Long story short: It’s a lot to take in and deal with. Get the help you need in order to make it as smooth and painless as possible.

Making an Offer: One of the Most Important Parts of Buying a House

You can’t buy a home without making a successful offer. The key to getting it right, and getting the seller to want to deal with you, is to do your research, rely on your realtor, and be patient. Buying a house can be a long process, but it will be so worth it in the end.